Jiang Zhuoer: MSTR may stop purchasing coins to pay dividends in the coming months, with almost no risk of a blowout
Jiang Zhuoer, the founder of the Liebit mining pool, stated that MicroStrategy's preferred stock STRC has significantly decoupled, dropping to a low of 73, reflecting the panic sentiment in the U.S. stock market towards Bitcoin.
He pointed out that MSTR has raised funds through the issuance of common stock for three consecutive weeks, with half of the funds raised in the first two weeks used to purchase 1,500 BTC, while in the third week, the amount of shares sold doubled, but the amount of BTC purchased decreased to 520 BTC, and most of the funds were retained for paying STRC dividends. He believes this is a clear signal of the company's pessimistic attitude towards the subsequent market.
Jiang Zhuoer indicated that the amount of BTC purchased by MSTR is expected to decline significantly in the coming months, and it may even stop purchasing BTC altogether, instead using the funds to pay STRC dividends. He also emphasized that STRC is a preferred stock rather than debt, meaning the company only needs to pay dividends without repaying the principal. Currently, MSTR's debt ratio is only about 10%, and unless the Bitcoin bear market lasts for ten years, there is no "explosion" risk for MSTR.
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